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As noted, there is no minimum period of availability for the interest rate and rate-dependent charges.

If a consumer expresses an intent to continue with an application after the rate and rate-dependent charges are no longer available, but within the period that the other GFE terms are available, the rate and rate-dependent charges float until the rate is locked.

Once the interest rate is locked, a new GFE is issued that reflects the rate and the rate-dependent charges based on the lock.

HUD’s intent is to reflect the relationship between the interest rate and the settlements costs, including a yield spread premium paid to a mortgage broker, and to combine all of the various loan origination charges into a single charge.

Block 1: Subject to an exception, this block must include all origination charges of the lender and, if applicable, the mortgage broker (e.g., application fee, processing fee, origination fee, underwriting fee, etc.).

If there is no mortgage broker, the lender can elect to (a) include in the Block 1 amount any credit or charge for the interest rate chosen, or (b) disclose any such credit or charge in Block 2 or Block 3, respectively.

If there is a mortgage broker, any credit or charge for the rate chosen must be disclosed in Block 2.

Block 2:

To reflect that there is a credit for the rate chosen, check the second box and insert the dollar amount of the credit and the interest rate in the applicable blanks. In Block 2, enter the credit as a negative dollar amount.

To reflect that there is a charge (or points) for the rate chosen, check the third box and insert the dollar amount of the points and the interest rate in the applicable blanks. In Block 2, enter the charge as a positive dollar amount.

The second and third boxes are like radio buttons. You can check one or the other, not both.

Block 2, Your credit or charge (points) for the specific interest rate chosen: Complete the second check box, and enter a credit of $2,000 and the note rate in the blanks. In Block 2 enter a negative $2,000 (the $2,000 yield spread premium).

Block 2, Your credit or charge (points) for the specific interest rate chosen: Complete the third check box, and enter a charge of $2,000 and the note rate in the blanks. In Block 2 enter $2,000 (the $2,000 in points).

For the loan originator compensation, the revised HUD-1 follows the format of the new GFE and provides for disclosure of: Our origination charge, Your credit or charge (points) for the specific interest rate chosen, and Your adjusted origination charges.

For the services required by the loan originator for which the originator will select the provider, list each applicable service and the estimated charge for each service and enter the total amount in Block 3.

Block 4. Title services and lender’s title insurance:

Enter the total estimated charge for all title services, premiums and endorsements in Block 4, regardless of who selects the provider.

Block 5. Owner’s title insurance:

For purchase transactions, enter the total estimated charge for all title premiums and endorsements in Block 5, regardless of who selects the provider.

For non-purchase transactions, you may enter “NA” or “Not Applicable”.

For the services required by the loan originator for which the borrower can select the provider, list each applicable service and the estimated charge for each service, and enter the total amount in Block 6.

Block 7. Government recording charges:

Enter the total estimated recording charges in Block 7. Do not enter transfer taxes.

Block 8. Transfer taxes:

Enter the total estimated transfer taxes in Block 8.

Block 9. Initial deposit for your escrow account:

Enter the total required escrow or impound deposit at closing in Block 9.

Indicate if the required escrow or impound deposits are for all property taxes, all insurance and any other specified items.

If deposits are required for some, but not all, property taxes or insurance, do not use the “all” box. Check the “other” box and identify the applicable taxes or insurance.

A violation of the HUD-1 requirements will be considered a violation of RESPA Section 4.

Currently there are no express statutory damages or penalties applicable to a Section 4 violation.

HUD has asked Congress to change this.

An inadvertent or technical error in completing the HUD-1 or HUD-1A would not be deemed a violation of RESPA Section 4 if a revised HUD-1 or HUD-1A is provided in accordance with the requirements of the new rule within 30 calendar days after settlement.

The title services charge and premium for lender’s title insurance are disclosed in the borrower’s column on line 1101.

If the settlement or closing fee is included in the amount disclosed on line 1101, then it is disclosed to the left of the borrower’s column on line 1102. If not, then the fee is disclosed in the borrower’s column.

The owner’s title charge is disclosed in the borrower’s column on line 1103.

The charge for lender’s title insurance is disclosed to the left of the borrower’s column on line 1104 (the amount already is included in the charge disclosed on line 1101).

The lender’s and owner’s title policy limits, and the agent’s and underwriter’s portions of the insurance premium, are disclosed to the left of the borrower’s column on lines 1105 to 1108.

1200. Government Recording and Transfer Charges

The total recording charges are disclosed in the borrower’s column on line 1201.

The itemized recording charges are disclosed to the left of the borrower’s column on line 1202.

The total transfer taxes are disclosed in the borrower’s column on line 1203.

The itemized transfer taxes are disclosed to the left of the borrower’s column on lines 1204 and 1205.

The total of the required services that the borrower can shop for is included in the borrower’s column on Line 1301.

The individual services are itemized on the lines that follow, with the amounts entered to the left of the borrower’s column.

The 1300 series also can be used to reflect miscellaneous itemized settlement charges that are not included in any specific category, such as a charge for a warranty plan.

The amounts for these items are entered in the borrower’s or seller’s columns.

Line 1400. Total Settlement Charges:

Enter the total amount of the charges disclosed in the columns for the 700 to 1300 series.

Seller paid fees:

Except as noted for the miscellaneous fees in the 1300 series, there is a special rule to disclose amounts paid by the seller. The purpose of the special rule is to provide for the comparison of the GFE charges and HUD-1 charges.

Even if the seller pays a charge, the charge must be recorded in the borrower’s column on the appropriate line. On page 1, a credit to the borrower in the amount of the charge must be entered in the 200 series and a corresponding charge to the seller must be entered in the 500 series.